Board raises hotel-motel tax cap to 8%; Chamber supports change to boost tourism funding
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Summary
Following a staff presentation and one public comment from the Cherokee County Chamber of Commerce, commissioners unanimously adopted an 8% hotel-motel excise tax for unincorporated Cherokee County to increase funding for tourism marketing, product development and related county priorities.
The Cherokee County Board of Commissioners voted unanimously on June 17 to increase the county’s hotel-motel excise tax rate from 6% to 8% (the state-authorized maximum) for unincorporated areas.
Agency staff explained the statutory limits on how revenues can be spent: a percentage must be used for tourism conventions and trade shows (TCT) and, above certain thresholds, counties may use funds for tourism product development (TPD) and nonrestricted uses. At the 8% level staff provided an illustrative breakdown showing that 43.75% of the additional revenue (3.5 percentage points of the 8%) must be spent on TCT (marketing by a destination marketing organization under a contract), up to 18.575% may be used for TPD (capital/operating costs for attractions), and the remainder can be used for nonrestricted purposes such as the conference center, recreation and parks, and economic development.
Mr. Veil Blackman, representing the Cherokee County Chamber of Commerce, spoke in support of the increase, saying that the tax is paid by visitors and can be used to fund marketing and tourism programs that benefit the community. Staff said if adopted, the rate would take effect the first day of the second month following adoption (August 1) and the county would receive remitted collections from the state thereafter.
Ending: Staff indicated they will incorporate the new rate in the FY26 budget and separately present updates to the agreement with the Chamber of Commerce; the board also approved an update to the Chamber agreement later in the meeting.
